Developing an estate plan is often thought of as something that you start considering when you’re nearing retirement. Although it’s not everyone’s favourite conversation to have, it is important to have an estate plan in place when you’re young to ensure that everything is taken care of, no matter what the future holds.
There are a few key life events that you should keep in mind when thinking about your estate plan. If you’re entering into any of these milestones or can foresee these milestones arising soon, make sure you are also taking the time to prioritise your estate plan accordingly.
Purchasing property is often the first milestone that should prompt you to think about estate planning. Your property is one of the most valuable assets you will own as a young adult so you should be thinking about who you would like to leave your home to in your estate plan.
Marriage or divorce
When you get married, you should be putting an estate plan in place that considers what should happen to your assets (joint and separate) if one of you were to pass away. This involves drawing up a Will, a trust or any other required documentation to protect your assets. If you are filing for a divorce, you should be also updating your current estate plan accordingly.
Once you become a parent, you should prioritise custody arrangements for your children. If you are married or with a longtime partner, you’ll need to have discussions related to your child/children’s guardian to ensure they are always in safe hands. It is also important to put in place measures regarding their financials in the event of your/ your partner’s passing.
If you have saved a significant amount in your bank account, you should be considering who you would like to receive those funds after your passing. If you receive an inheritance that boosts your savings amount, this should also be taken into account when looking at your overall savings amount.
Ready to develop your estate plan?
If you have a home, dependants, are married/divorced or have a significant amount of savings, creating an estate plan is the best way to protect you in the future. It’s also important to continually update and review your estate plan as major life changes occur.
Creating an estate plan is one of the most important things you can do to protect yourself, your assets and your loved ones. It’s never too early to start thinking about how you would like everything to be taken care of in the event of your passing. If you don’t have an estate plan in place, it’s not too late to get started. Learn more about APS WIlls & Estates here.